That's really helpful information. Is the low-income certification something separate I need to apply for, or is it part of the OIC application?

The low-income certification is actually included as part of the OIC application process. When you complete Form 656, there's a section (Section 1) where you can check a box to request the low-income certification. If your household income is at or below 250% of the federal poverty guidelines, you qualify for both the application fee waiver and to skip the initial payment requirement. Based on your annual income of $41K, you might qualify depending on your household size. For 2025, the threshold for a single person is around $36K, but for a household of 2, it's about $49K. Definitely worth checking if you're close to those numbers.

I used a CPA who specializes in IRS resolution for my OIC last year. Cost me $1,500 total. Worth every penny because they found several exemptions I would have missed. My offer got accepted for about 15% of what I originally owed. Those national tax relief companies with the radio ads wanted to charge me $4,500+ for the same service, so definitely shop around.

Do you need a specific reason for hardship? My business is struggling mainly because I made some bad inventory decisions, not because of any external factors. Would that still qualify?

You don't necessarily need a specific external reason like a natural disaster. The SBA recognizes that small businesses face various challenges. Poor business performance itself can qualify as hardship, regardless of the cause. What matters is demonstrating that your current financial situation makes the original loan terms unmanageable. You'll need to provide financial statements showing reduced revenue or increased expenses that impact your ability to make payments. Your inventory decision issue would likely qualify as long as you can document its impact on your business finances.

Thanks for bringing this up! I actually didn't know about SCORE. Just looked into it and there's a chapter near me. Did you meet with your mentor in person or virtually? How long did it take to get matched with someone?

How do you even verify which type was paid? My financial service just says "tax payment" on the statement, and my company's equity admin isn't helpful.

You need to get documentation from the financial service that specifically shows the payment type and ideally the form used to make the payment. For estimated taxes, it would typically be Form 1040-ES. For AMT specifically, there's no separate payment form, but the payment should be designated for Form 6251. Ask the financial service for the exact copies of what was submitted to the IRS. Sometimes they use a payment voucher with specific codes that indicates what the payment was for. You can also request your IRS transcript which will show all payments received and how they were coded in the system. This is where services like Claimyr can help because you can ask the IRS agent directly how a specific payment was coded.

Very risky to dispute 409A valuations. The company sets those based on independent assessments, and challenging them can flag you for audit. Better to focus on properly tracking AMT credits for future years.

I hadn't even considered this angle! My situation might actually fall into this gray area - I'm still expected to work set hours and use company equipment. Do you know what the specific tests are that the IRS uses? And if I pursue this, would I likely get fired or face other repercussions?

The IRS primarily looks at three categories: Behavioral Control (do they control how you work?), Financial Control (do they control the business aspects of your work?), and Relationship Type (written contracts, benefits, permanency of relationship). If they control when, where, and how you work, provide your equipment, don't let you work for others, pay you by time rather than project, and the relationship is ongoing rather than project-based, you're likely an employee regardless of what they call you. As for repercussions, legally they can't fire you for questioning your classification - that would be retaliation. But practically speaking, it could create tension. Some people start by having an informal conversation with HR or management before filing anything with the IRS. Documentation is key throughout this process.

Has anyone used Schwab for their solo 401(k)? Their regular investment accounts are great but wondering specifically about their solo 401(k) options compared to Fidelity.

I actually did research Schwab before settling on Fidelity. Their solo 401(k) is solid with no setup or maintenance fees similar to Fidelity. The main differences I found were that Schwab's plan doesn't allow for Roth contributions within the solo 401(k), while Fidelity does. Schwab also requires a bit more paperwork for the initial setup. Investment options are comparable between the two, with both offering good access to low-cost index funds. Schwab's customer service for small business retirement accounts was excellent in my experience during the research phase. If the Roth option isn't important to you, Schwab is definitely worth considering.

11 How do you know if you need to make those quarterly payments? Is there a minimum amount you have to earn?

5 You generally need to make quarterly estimated tax payments if you expect to owe at least $1,000 in taxes for the year. There's no specific income threshold since it depends on your overall tax situation, but it's a good idea to start making them if your 1099 work is bringing in more than a few thousand dollars. The payments are due April 15, June 15, September 15, and January 15 of the following year. You can calculate how much to pay using Form 1040-ES or just pay 100% of what you owed last year divided into four equal payments (110% if your income is over $150,000) to avoid penalties.

1 Thanks for the advice! I didn't realize I needed to set aside that much. Would it be smart to just open a separate savings account for tax money?